Samsung expects second-quarter profits to miss analysts estimates

Samsung Galaxy X foldable battery

Samsung Galaxy X foldable battery

Operating profit for the three-month period is expected to come in at 14.8 trillion won ($13 billion) from 58 trillion won (£39bn) in revenues.

Samsung shares fell 2 percent as the guidance gave investors insight into how badly the decline in smartphone profitability is hurting the company's bottom line, after it warned in April of an earnings slowdown amid tougher competition.

"It is going to be tough".

The smartphone market has been slowing down in recent quarters.

While these aren't numbers to be sniffed at, especially as it marks an 11 per cent increase in profit year on year, it's a far cry from the first quarter of 2017, during which Samsung recorded its strongest results ever with 15.64 trillion won in profit from revenue of 60.56 trillion won.

It's also easy to imagine Samsung giving the Bluetooth-equipped stylus other features, like a Tile mate location option for tracking the pen in case you lose it or using the pen to find your phone.

"The won depreciation is working in Samsung's favor", said Claire Kim, an analyst at Daishin Securities Co.

But it's interesting to hear about the kind of changes the tenth-anniversary Galaxy S flagship could bring on the imaging front, and we can expect to see more rumors about the same surfacing online in the months to come. The firm did not elaborate and will release detailed earnings in late July.

The semiconductor business forms the largest portion of Samsung's profit.

"While chip sales keep rising, smartphones aren't looking good", said Jung Sang-jin, a fund manager at Korea Investment Management.

The high cost of chips has hurt many electronics makers, with Chinese manufacturers among the hardest hit as they operate at lower margins than rivals.

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